Ottawa Regulation Of The Real Estate Business
Start A Real Estate Business
To develop and implement your Real Estate in Ottawa we recommend that you participate in the MI EmpresaPropia Program. Here we present a summary of the resources and topics to be discussed in the specialized individual consultancies for this area and thus be able to develop your Business Plan
Business Plan for Real Estate Business Market Research What do our future clients look for?
Healthcare: The real estate companies have realized that their clients have a more significant tendency towards physical care and health. That is why the real estate projects have common areas created to meet this need (gym, sauna, pool)
Location: Before it was easy to see that real estate projects were carried out in traditional areas, however, this has changed, due to the high cost of the properties. Now there is a tendency to carry out real estate projects in the extremities of the city.
Planning And Strategy
Opportunities.- Sustained growth of the sector for several years. This continued growth has led to an increase in the value of real estate.
Threats.– Large real estate projects that will absorb a large part of the demand. Also, being large projects, these offer more services within their plans.
Strengths.- In your new business, participates directly in what you know most. If you’re good at selling, focus on promoting your product. Participate in direct customer service.
Weaknesses.- High investment costs in real estate projects. This originates due to the high demand for the land and the increase of the expenses in the construction materials.
Business Model And Product Design…
What Characteristics Should Real Estate Have?
Property: The market trend reflects that a department must have a room, two rooms, a kitchen, two bathrooms, laundry, and common areas for recreation.
Accessories: It can offer the service of a common area of a gymnasium, sauna, swimming pool, garage, etc.
Production: Processes, Suppliers, and Costs
Personnel And Organization
A small real estate company should have an architect and engineer. The advantage of this type of business is that you can request those services, in addition to the construction services themselves, per project. You do not need to assume it in the company’s form. It would be advisable to send to create uniforms that go according to the corporate identity of the business.
Finance and Accounting
It will be necessary to prepare a Cash Flow for your real estate company so that you can answer three critical questions: Initial Investment, time of recovery of the investment and profitability of the Business. Real estate companies can only benefit from this tax regime, due to the high income that can be had when developing activities. Likewise, real estate companies are subject to detraction, since they will also lease real estate (financial lease contracts are not subject to disparagement). The percentage that is deducted in this case would be 12%.
Plan Ofbusiness Real Estate
For the real estate business plan to be operative, the following questions must be considered and responded to, at least:
What service will I provide? Am I going to specialize in rentals? In buying and selling operations? In tourist apartments? Or
Will I combine to dilute risks? …
How will I lend it? In my place?, franchisee ?, Internet?
With what quality will I offer my services? What degree of deepening do I aspire to have in the market? What quality guarantees will I provide? How will I manage customer service?
Who are my competitors? How do they work and how am I going to differentiate between them? What agencies are there in the area? What do they offer? What advertising do they do? How much do they charge their customers?
You must determine what capital you need to start and what will be your financial cushion to assume possible losses and cover unforeseen events.
Both Income And Expenses Are Going To Be Variable.
As far as income is concerned, not every month you will be able to sell or rent the same number of homes or premises (probably in May and June your revenue will increase if you do business in summer areas, but it is likely that during December and January suffer a downturn).
As for expenses, keep in mind that the salaries of sellers usually have a fixed part and a commission, which will fluctuate according to sales.
The advisable thing is to realize a plan to a year, the term that is considered normal to reach the point of balance, that is to say, the moment in which losses and gains are equalized (and from which your company begins to be profitable).
It is essential that you take into account the fixed costs (electricity, water, etc.) and the salaries of the staff if you want to have it. Your specialization will also determine the expenses. For example, if you are going to rent apartments in coastal areas, the cost of borrowing your premises – apparently, in a central area- will be higher than if you are dedicated to the sale of industrial buildings, in which case you will be able to establish yourself in the outskirts.